Colin Topolnitsky - Onestopedmonton.com for all your Real Estate needs

Colin Topolnitsky - Onestopedmonton.com for all your Real Estate needs I don't wear a tie to work. I don't have ties to any one bank. I will shop for the best mortgage for you every time - your no-tie mortgage guy!

Get the right mortgage for you in Edmonton at no charge.

CMHC is increasing premiums this March 17th for those needing mortgage insurance.What does this mean to you in layman's ...
01/17/2017

CMHC is increasing premiums this March 17th for those needing mortgage insurance.

What does this mean to you in layman's terms as a new home buyer? It could mean monthly payment increases of $3 to $17 per month depending on the size of your mortgage, and another drop in the amount you qualify for.

As a result, we may also see another bump in borrowing costs for conventional mortgages as the banks see increasingly high cost of funds.

The premium changes are below. As always, if you have any questions about how this might impact you directly, contact your trusty neighbourhood mortgage broker!

10/04/2016

Another round of mortgage rule changes have come down the pipe coming into place in 2 weeks, just wanted to clarify what the changes mean as there seems to be a fair amount of misconception out there right now. Talk to a trusted Mortgage Professional if you have any questions about this as it is not simply laid out in the media right now. It is certainly a significant change that will hugely impact housing, but hopefully people will get educated on what it actually means before flying off the handle.

The first thing to stress is that your interest rates are NOT changing! It does not mean the end of low and discounted rates. Everyone still has access to the record low rates (we will see how long they last though) being offered. It is simply how you qualify for that mortgage that is being changed. Now every insured mortgage must qualified using a government set Mortgage Qualifying Rate. Basically, what is happening, is that your borrowing power is being reduced.

As an example, someone who makes $50K per year salary with no debt and 5% for down payment under the current rules could qualify for a $300,000 purchase (assumes $200 for prop taxes and $100 for heating). That same person effective October 17 will now only be able to qualify for a $235,000 purchase. While you will still be getting an interest rate of 2.39% or less, your payments to see how you qualify for that mortgage and can afford it are assuming a rate of 4.64%, almost double.

Time will tell what affect this actually ends up having on the markets. Perhaps we will simply see more first-time buyers (who are most likely to be affected by this change immediately) needing co-signers so yet again the bank of mom and dad will continue to be frequented. Mortgage arrears in Canada were actually already quite low, and the housing market is a major driver of the Canadian economy, yet again the government misses the boat, where they should be instead over regulating the $1,300 per month truck payments and $20K credit cards that are actually putting the average canadian at risk living paycheque to paycheque.

02/12/2016

MORTGAGE RULE CHANGES are coming!! Effective on Monday, there will be slightly increased minimum down payment requirements for homes purchased over $500,000. For those of you with applications already in, it won't affect you as long as your mortgage funds on or before July 1, 2016. Remember too that this only applies to the amount OVER $500K, so purchases under $500K are unaffected and minimum requirement is still 5% down! Contact me if you have any questions on how this could affect you!

Below is an example:

Purchase Price: $800,000.
500,000 x 5% (0.05) = 25,000
300,000 x 10% (0.10) = 30,000
$25,000 + $30,000 = $55,000
Minimum down payment requirement: $55,000

01/07/2016

Interest rates are on the rise!!! If you are considering purchasing in the next 4 months, you need to consolidate your debts or your mortgage is up for renewal in the same time period, now is the time to be looking at securing yourself an interest rate!!!

12/15/2015

There is always a lot of confusion surrounding mortgage rule changes. Here is a basic summary of the what the minimum down payment rules coming into effect will be effective February 2016:

Homes Under $500K: Minimum down payment will remain at 5% down (e.g. 5% x $400,000 = $20,000).

Homes Over $500K but Under $1 Million: Minimum down payment will be 5% of the first $500K plus 10% of everything ABOVE the $500K only (e.g $700K home = 5% x $500K + 10% x $200K = $25K + $20K = $45K).

Homes Over $1 Million: Minimum down payment will remain at 20% of the purchase price.

For all rental properties the minimum down payment will remain at 20% of the purchase price.

10/21/2015

Not much of a surprise following the election and given economic targets, the bank's overnight rate was held steady at 1/2%. For borrowers, this means that the prime lending rate at your banks should stay the same at 2.7% and we should see no differences in interest rates for those of you on variable rate mortgages.

http://www.bankofcanada.ca/2015/10/fad-press-release-2015-10-21/

10/20/2015

Time will tell what will happen for Alberta with the liberal victory in Parliament. If you're asking what this could mean for interest rates, my commentary would be as follows (keep in mind I'm not an economist, but I do watch interest rates a lot..): Until we see the results of increased economic performance, we are unlikely to see any sort of increases in the prime lending rate (for short term mortgage borrowers or variable rate mortgages). Where we may see some effect in the nearer term is in the bond rates, which are the driving factor behind the fixed rates for borrowing. With liberals set to embark on a fairly substantial deficit-funded spending spree, there is a pretty good chance that we will see bond rates driven up to attract increased investment interest in the bonds. As fixed rates are based on a spread above the bonds, this would in theory see our interest rates driven up (think circa 2008/2009, not 1981 haha). So that said, it could be a great time right now if your renewal is coming up or you are considering a move, to look at renewing into a 5-year fixed rate which are still being done in the mid 2%'s.. or stick to your love of the variable rate.

06/27/2013

The interest rate increases over the past few weeks have lowered price affordability by nearly $19,000 (based on average 5-year fixed rates with one national lender). IE - your payments on a $300,000 house on old rates are almost now the same as what they would be buying a $281,000 house on today's rates. This said, there are still lots of good other options out there, so don't just sign a 5-year fixed because it's the most common thing people do, talk to a mortgage professional and get some actual ADVICE and real OPTIONS!

05/31/2013

Rates are increasing left and right. If you are renewing in 4 months, shopping for a house or thinking about a refi, NOW is the time to do it!

03/06/2013

Shocker (Not).. Bank of Canada keeps overnight rate at 1%. Last change Sep '10. GDP growth only 0.6% (ann) Q4-12.

03/04/2013

I can't stress enough the importance of using a mortgage professional for your home purchase or refinance. Recent case study: Client purchasing home for land value to be demolished with a new house to be built on site. An unnamed big 5 bank, recommended by builder, orders appraisal and client is told appraised value is $110,000 low (this doesn't follow comparables in the neighbourhood whatsoever). I took file over, get mortgage approved and a third party appraisal is ordered which comes back for $10,000 over offer price and $120,000 higher than previous appraisal. This matches perfectly the value supported by comparables provided by realtor. It is important that the person advising you with your biggest purchase has both common sense and an understanding of the local real estate market outside of an office to avoid any mistakes!! Always use an expert!

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